Transcript for:
Understanding Cloud Computing Strategies

Title: COMP3xxxx Service Centered and Cloud Computing URL Source: blob://pdf/f718c4f0-bea6-43df-b238-aa1708d9f6b2 Markdown Content: COMP30231 Term 2 overview Dr. Zoheir Ezziane, PhD & FHEA COMP30231 - Service centric & Cloud ## Computing Module summary Where this part of the module fits Learning outcomes Lectures & seminars Assessment > 3May 2025 2 ## COMP30231 - Module summary COMP30231 Service -centric and Cloud Computing Focuses on Service Oriented Architecture (SOA), its implementation and use, specifically: Technical considerations (Term 1) Business and implementation considerations within a cloud environment (Term 2) > 3May 2025 3 ## COMP30231 Module summary This term Alignment between business and technology strategy and Cloud Computing Business considerations public, private or hybrid? The business case for Cloud Computing; benefits, risks and opportunities, calculating the return on investment Cost models for Cloud Computing evolution from capital to expense The role of third -party Cloud service providers Service Level Agreements (SLAs) and measuring performance Cloud services and business transformation Examples from Microsoft Azure > 3 May 2025 4 ## COMP30231 Learning outcomes Demonstrate an understanding of why Cloud services can be a viable option for businesses, considering the existing technology infrastructure, costs, risks and business strategy Determine the key criteria by which a contract with a Cloud service provider can be assessed Be able to prepare a business case for the deployment of Cloud services for an organisation, considering costs, benefits, risks and relevant business & technology goals Be able to identify key aspects of the implementation or provision of Cloud services by a third -party and make specific recommendations for the management of those aspects > 3 May 2025 5 ## COMP30231 - Lectures & seminars Lecture Subject Week 1 IT Strategy & where Cloud Computing fits Week 2 Adopting Cloud Computing #1 Enterprise Architecture Week 3 Adopting Cloud Computing #2 Gap analysis and implementation Week 4 Adopting Cloud Computing #3 - Governance Week 5 Cost models for Cloud Computing moving from capital to expense Week 6 The business case for moving to Cloud Computing Week 7 Managing risk in Cloud Computing Week 8 Cloud provider business models Week 9 Contracting with a Cloud provider Week 10 Review Week 11, 12 Exam Support drop -ins 3 May 2025 6COMP30231 - Assessment Assessment for this part of the module is a 2-hour exam including SA questions and LA questions. The exam will take place on campus. You will answer a range of SA questions based on lectures ( 30 marks ) and a range of LA questions about business and implementation issues related to cloud computing specifically with respect to the content of the case study ( 20 marks ) > 3 May 2025 7 3 May 2025 8Lecture 1. IS strategy & Cloud computing IS, business strategy & cloud computing Organisational context of IS Alignment of business strategy and IS strategy How IS strategy leads to cloud computing Technology trends > 3 May 2025 10 Organisational context of IS Organisational context of IS Through the 20 th Century, the INFORMATION handling needs of an organisation grew From 1900 to 1960, the ratio of INFORMATION workers to PRODUCTION workers in USA increased from 0.22 to 0.75 Can also be called KNOWLEDGE workers (software engineers, doctors, architects, engineers, scientists, accountants, lawyers, academics) Over the same period, the number of INFORMATION workers in the USA grew from 5.2 million to 28 million In the early 1960s technological advances meant that organisations could invest in technology to aid information handling In 2020 the information market had a share of $136.48 billion with an expected $196.7 billion share by 2025 > 3May 2025 12 1965 1984 1990 > Information > Production > Technology > spend 2022 # ?IT contribution to labour productivity in ## organisations 3 May 2025 13 Mainframes Mini -computers and PCs Internet & Web 1.0 Mobile devices and Web 2.0 Eras of IT adoption "[...] in the United States, Canada, the Eurozone, and the United Kingdom, the contribution of ICT to labour productivity growth significantly rose in 1995 -2004 relative to 1974 -1995. However, the contribution fell in 2004 -2013. It only remains positive as a result of continued advances in ICT performance as proxied by falls in the relative price of ICT." Cette et al. (2015). Contribution of ICT Diffusion to Labour Productivity Growth: The United States, Canada, the Eurozone, and the United Kingdom, 1970 - 2013 . International Productivity Monitor, Centre for the Study of Living Standards, vol. 28, pages 81 -88. Cloud computing Organisational context of IS What do organisations do with IS? 3 May 2025 14 Porter, M.E. (1985), Competitive Advantage Creating and Sustaining Superior Performance , The Free Press, London Organisational context of IS What do organisations do with IS? 3 May 2025 15 Communicate with suppliers Production planning Production control Payroll Marketing CRM Warehouse management Financial analysis Inventory control Recipe management Product management Energy management Leases and rents Financial reporting Communicate with customers Internal communications Manage maintenance Personnel records Provide service Contract records Manage guarantees Recruitment Training & Development POS data Alignment of business strategy & IS strategy 3 May 2025 17 Security Business objectives Latest IS developments Implementation Value for money Personnel Data Karenann Terrell CIO Wal -Mart Cloud Mobile ERP CRM SCM Web services Open source Social media Outsourcing Analysis Data protection External Internal Outsourcing ## Pressures on the CIO - IS Strategy Pressures - Business Strategy Pressures http://library.fora.tv/2012/07/24/CIO_Forum_Technology_Disruption_and_Cybersecurity/Walmart_Was_Big_Data_Before_ Big_Data_Was_Cool 3 May 2025 18 # IS # driven # Business # driven Competitive environment Legislation changes Technology development Risk mitigation Cost reduction Cost reduction # ? Business goals Redundancy ## IS strategy focus IS strategy focus generic pillars Business Improvement Help the organisation streamline its processes Eliminate duplicate or unnecessary tasks Allow customers / suppliers to self -manage their transactions Business Enablement Extend or transform how an organisation does business Help the organisation comply with regulations Aid top line (sales) growth Aid new markets and channels Infrastructure Maintenance and improvement of the organisations hardware, software, telecoms, data etc. Manage risk > 3 May 2025 19 > Adapted from McKeen, J.D. & Smith, H.A. (2009), IT Strategy in Action , Pearson Education ## IS strategy focus > 3 May 2025 20 ## Alignment of business and IS strategy 3 May 2025 21 Alignment Synchronisation Convergence Technology supports, enables, and does not constrain the companys current and evolving business strategies. Technology not only enables execution of current business strategy but also anticipates and helps shape future business models and strategy. Business and technology activities intertwine, and the leadership teams operate almost interchangeably. Hoque, F. et al (2006) Winning the 3 -Legged Race: When Business & Technology Run Together , Prentice Hall Rather than attempting to react to the business agenda, IT will help set it. The two merge. IT reacts to the business agenda such that they effectively work together. How IS strategy leads to Cloud Computing 3 May 2025 23 Consider technological discontinuities, such as cloud computing Businesses are putting money into areas such as cloud computing Cloud computing is allowing businesses to deliver services and new capabilities much faster and more cost -efficiently than ever before Technology trends such as big data, cloud computing, mobility and social media are giving rise to new marketing and operational capabilities In 2020, less than 50% of small and of medium -sized enterprises used cloud computing [Eurostat] On average, 52% of an organizations data center servers are virtualized By 2021, 94 percent of worklo ads and compute instances will be processed by cloud data cen ters; 6% will be processed by tr aditional data centers [CISCO] Driven by cost Dave Power, Associate Information Consultant at Eli Lilly and Company: With AWS, Powers said, a new server can be up and running in three minutes (it used to take Eli Lilly seven and a half weeks to deploy a server internally) and a 64 -node Linux cluster can be online in five minutes (compared with three months internally). Ingo Elfering, Vice President of Information Technology Strategy, GlaxoSmithKline: With Online Services, we are able to reduce our IT operational costs by roughly 30% of what were spending. Jim Swartz, CIO, Sybase: At Sybase, a private cloud of virtual servers inside its data centre has saved nearly $US2 million annually since 2006, Swartz says, because the company can share computing power and storage resources across servers. 100s of startups in Silicon Valley harness large computing resources without buying their own machines > 3 May 2025 ,Fayoumi 24 3 May 2025 25 Mainframe computing (1960 -1980) Client / Server computing (1980 -1990) Internet computing (1990 -2010) Cloud computing (2010 on) > ZK Research, 2012 ## How IS strategy leads to cloud computing Consider again the three generic pillars of an IS strategy Consider again the IS priorities in the McKinsey research Can cloud computing help achieve any or some of those? > 3 May 2025 26 ## IS strategy cloud computing Business Improvement Business Enablement Infrastructure > 3May 2025 27 More flexible, adaptable IT services, devices and applications Cost models based on expense rather than capital Lower switching costs to other/new applications, infrastructure or platforms Shared risk with cloud services provider(s) Be better able to collect and analyse customer, market and business data Provide consistent applications and services across the organisation 3 May 2025 28 ## Top cloud initiatives - 2020 However: 49% delay cloud deployment poor cloud performance, mergers and acquisitions, and security concerns https://www.cloudwards.net/cloud -computing -statistics/ https://solutionsreview.com/cloud -platforms/74 -of -companies -move -apps -to - the -cloud -then -back -on -premise/ Global market share - 2020 3 May 2025 29 https://www.cloudwards.net/cloud -computing -statistics/ Technology trends 3 May 2025 31 The SoMoClo concept > 3 May 2025 32 Social Mobile Cloud In 2010 three IS technologies were becoming dominant. Concurrent but not necessarily connected. The SoMoClo concept 3 May 2025 33 Mobile Cloud In 2011 these three technologies began to overlap and merge cloud -enabled social collaboration applications Social The convergence of collaborative, on -the - go technologies that allow users to access data and applications from anywhere at any time > SoMoClo Technologies: transforming how and where business takes place (2015): > https://www.accaglobal.com/content/dam/ACCA_Global/Technical/tech/pi_ACCA -IMA -SoMoClo -report.pdf ## The SoMoClo concept > 3 May 2025 34 > Mobile From 2012 onwards, cloud became the core infrastructure , mobile the dominant access layer , and social orientated applications the means of interaction Cloud > Mobile > Mobile > Mobile > Mobile Mobile > Mobile > Mobile > Mobile > Mobile > Mobile > Mobile The customer, the user, the channel partner can all be presumed to be mobile There may be M2M interaction as well as M2H 3 May 2025 35 3 May 2025 36 Components of IS strategy to support and align with the business can be successfully fulfilled by cloud computing services Technology developments are creating an environment where cloud -based services are becoming more dominant But what specifically will be done? What service and deployment models? What functionality? What guarantees and agreements? Summary & seminar topic Summary Increasing organisational complexity has created an increasingly complex need for information and information handling Organisations use IS for many different needs We are at the beginning of a phase where IS technologies (especially social media, cloud, and mobile devices) can truly be said to be changing the nature of information Technology developments are also driving the adoption of cloud services in organisations Organisational IS is most effective when it aligns with and supports the business IS should be managed and deployed with a view to the organisations strategy > 3 May 2025 38 ## Seminar Consider Nottingham Trent University What aspects of their IS operations could be served by cloud computing? Consider; Improving existing education and business services Providing services more cost effectively Providing new services From the NOW learning room, read Sultan, N. (2010) Cloud computing for education: A new dawn?, International Journal of Information Management , Vol. 30, pp.109 -116 for ideas.